- Caledonia Mining Corporation (DI)
- 27 March 2025 12:02:38
Source: Sharecast
The AIM-traded firm said the study, initially expected in the first quarter of 2025, was now progressing with support from DRA Projects and other technical consultants.
It said the updated study would supersede the preliminary economic assessment released in June last year, which outlined a plan to triple Caledonia’s gold production and transform the company into an intermediate gold producer.
The company said ongoing work was continuing to confirm Bilboes’ strong fundamentals, particularly in the context of a supportive gold price environment.
Key areas under review included the potential to sell gold concentrate in the early years of production, which could defer investment in a BIOX processing circuit.
Caledonia said it was also evaluating relocating the planned tailings storage facility to its adjacent Motapa property, where favourable topography could reduce construction costs.
Additionally, promising exploration results at Motapa were being incorporated into the Bilboes study, with the potential to materially improve the economics of a combined project.
The company said it was also exploring near-term revenue opportunities elsewhere in its portfolio.
High-grade mineralisation recently identified at the Blanket Mine could contribute to funding Bilboes’ development and offer additional financial flexibility.
Caledonia’s board reiterated its commitment to maximising shareholder value and ensuring the Bilboes project was optimised both technically and financially.
It said discussions with potential funding partners and Zimbabwean authorities remained ongoing, adding that it expected to provide an update on the revised timeline for the feasibility study in due course.
“Bilboes has the potential to be truly transformative for Caledonia, and the work we are doing now is about making sure we get it right,” said chief executive officer Mark Learmonth.
“We are encouraged by the results to date and are taking a disciplined approach to optimisation-both to enhance returns and to ensure we can fund the project in the most efficient way possible.
“With strong exploration results at Motapa, promising developments at Blanket, and supportive market conditions, we remain confident in Bilboes' ability to significantly reshape Caledonia's growth profile.”
At 1100 GMT, shares in Caledonia Mining Corporation were up 4% at 910p.
Reporting by Josh White for Sharecast.com.